TSL profit up 517%

THE TSL Limited Group posted a 517,14% increase in profit after tax to $9,77 million for the six months ended April 30, 2018 on the back of satisfactory agricultural results.

BY TATIRA ZWINOIRA

The increase was from the profit after tax of $1,58 million over the same period last year.

In a statement accompanying its results on Friday, TSL Limited said revenue increased to $24,59 million from a 2017 comparative of $23,62 million.

“The performance of the agriculture cluster has been satisfactory. The inconsistent rainfall pattern resulted in a reduced uptake of agro inputs. The tobacco related businesses, are poised to benefit from an increased market share of the national tobacco crop which is expected to be between 10% and 15% up on the prior year with an estimated ranging between 210 and 220 million kg…” TSL Limited said.

“…along with prices that are expected to be marginally firmer. The one-week later start to the tobacco selling season has, to an extent, affected the numbers reported for the tobacco-related businesses, but these volumes should be reflected in the group’s full year results.”

TSL Limited said the current trends also pointed to encouraging results for the company’s logistics and real estate clusters.

Spurring the growth in the logistics portfolio was the increase of general cargo volumes as the company introduced value-add services particularly for fertilizer importers.

But, the company reported foreign currency was negatively affecting its distribution business.

Under its real estate cluster, the company recorded an improvement due to the larger tobacco crop that increased demand for warehousing.

“The late start to the tobacco selling season has impacted the reported volumes of the hessian business.

However, volumes are above prior year, due to new contracts signed up and the business has retained its preferred supplier position in the supply of hessian to the market,” TSL Limited said.

Despite the 4,1% increase in revenues compared to the 2017 comparative period, the company’s assets declined by 4,09% to $71,77 million in the period under review from the 2017 comparative of $74,84 million.

However, the company’s total equity increased to about $83 million during the period under review from $75,68 million recorded over the similar 2017 period, mainly due to an improvement of retained earnings.

Net finance costs also rose marginally to $694 703 in the period under review from $643 861.

In terms of its net profit margin, the company registered a margin of 39,75% leaving it in a profitable position going into the second half of its financial year.

“The group will continue to play its part in key sectors of the economy, namely, agriculture, logistics and real estate.

A review of the group’s strategy is currently underway in order to position the business to take advantage of the significant growth opportunities that we see in the medium term,” TSL Limited said.

The expected higher tobacco output for the current season is also expected to spur the growth of the company’s profits.